Chapter
Ten: THE FEDERAL RESERVE TODAY: The Federal Reserve Conspiracy by Antony C.
Sutton from archive.org
Chapter Ten: THE FEDERAL RESERVE TODAY
Today in the 1990s the Federal Reserve
quietly, and protected from any
public examination or accounting, continues its never challenged monopoly of the money supply. Its twofold
function is: (a) to
regulate the flow of credit and money for specific economic objectives, and (b) to
supervise commercial banks, i.e.,
mostly itself. The central policymaking
body of the FRS is the Board of
Governors appointed by the President and confirmed by the Senate. Each of the 12 regional banks
has its own directors. These are
divided into three classes. Class A directors represent the banking system, Class B directors
represent industry and Class C,
the public, supposedly.
In fact, Class C directors have never represented the public. It is not at all unusual for a banker
to serve a term as a Class A
director then go on and serve another term as a Class C director. The Federal Reserve is a private
system owned by the banks (see
figure below). Fed control over money is a private monopoly granted by Congress. It's so powerful that no Congressman
dare ask simple questions. 107 The Federal Reserve
Conspiracy Of course, there
is good reason why the Fed doesn't want citizens poking around asking questions. It is a moneymaking machine
literally — and this is freely
admitted by the U. S. Government. Here is an official statement: Where does the Federal Reserve get the money with
which to create bank reserves'? It doesn't "get" the
money, it creates it. When the
Federal Reserve writes a check it is creating money. This can result in an increase in bank reserves
- a demand deposit or in cash. If
the customer prefers cash he can demand Federal Reserve Notes and the Federal Reserve will have
the Treasury Department print
them. The Federal Reserve is a total moneymaking machine. It can issue money or checks. And it
never has a problem in making its
checks good because it can obtain $5 and $10 bills necessary to cover its checks simply by asking the
Treasury Department to print them.
(Source: Money Facts, published by the
Committee on Banking and Currency, 1964, U. S. Congress.) Back in 1913 when the Federal
Reserve Act was passed, the idea
of a Federal Reserve System - in effect a central bank - was promoted
to the American people by both
bankers and President Woodrow Wilson
as an institution outside the control and influence of bankers - on
the grounds that monetary policy
was too important to be left in the hands
of private interests. However, in fact, the institution is
completely dominated, and always
has been, by major New York bankers. The Fed lied! The very first meeting of the Federal Reserve Bank of
New York on October 5, 1914, was
held in the offices of the Bank of Manhattan, 40 Wall Street, New York. Bank of 108 The Federal Reserve Today Manhattan later merged with Chase
National to become Chase Manhattan
Bank. Skipping intervening
history for lack of space, we also find that in the mid-1970s, the leading Class A director of the New York
Fed was none other than Chairman
of the Trilateral Commission - David
Rockefeller. David's term expired in 1976 and he was replaced by
the chairman of Morgan Guaranty
Trust. However, David's influence was
perpetuated in two ways: by appointment of Trilateral Paul Volcker
as president of the New York
Federal Reserve Bank, a permanent position not subject to the necessity of re-election at periodic
intervals and appointment of G.
William Miller (member of the Chase Advisory Board) as Chairman of the Federal Reserve System,
replacing Trilateralist Arthur
Burns. Moreover, others (of
the nine) Federal Reserve Bank of New York directors had links to Chase Manhattan Bank. For example,
the three Class B directors were
Maurice F. Granville, Chairman of the board of Texaco; William S. Sneath, Chairman of the Board of Union
Carbide; and John R. Mulhearn,
President of New York Telephone.
Let's look briefly at the career of Paul Volcker, former president
of the New York Federal Reserve
Bank. In 30 years, Volcker has divided
his time almost equally between the Federal Reserve Bank, Chase Manhattan Bank and sub-cabinet
positions in Washington, D.C. - a
perfect example of the so-called "revolving door" and the
Trilateral objective of
"blurring the distinctions between public and private institutions" for Trilateral
advantage. Paul Volcker was
born in 1927 in New Jersey. His first degree is from Princeton, his M. A. from Harvard and his post-graduate
work from the London School of
Economics -that well known home of
British socialism. In 1952, straight from the London School of Economics, Volcker joined the Federal
Reserve Bank of New York as an
economist. He stayed for five years, until 1957, at which time Volcker moved 109 The Federal Reserve Conspiracy from Liberty Street to become an
economist for Chase Manhattan Bank,
where he stayed for four years, until 1961. In 1961, Volcker went to the Treasury Department in Washington, thus
completing the first round of his
three stop "revolving door." Appointed as Deputy Undersecretary for Monetary Affairs, he held that job
just long enough to learn the
ropes in Washington, and returned to New York, to Chase Manhattan Bank, as Vice President in charge of
Planning. After three years in that
post, Volcker left in 1969 to become Undersecretary for Monetary Affairs at the U. S. Treasury Department.
After five years, Volcker
completed the second round of his "revolving door" with
an appointment as President of the
Federal Reserve Bank of New York.
Volcker is also a member of the Council on Foreign Relations, the Rockefeller Foundation and the American
Friends of the London School of
Economics. If Paul Volcker
was a solitary phenomenon, we could make no case for Trilateral control of the Federal Reserve System.
In fact, the Volcker phenomenon is
one of a dozen parallel situations.
The Revolving Door Career of Trilateral Paul Volcker
1952-57 Economist, Federal Reserve Bank of New York 1957- 61 Economist, Chase Manhattan Bank
1962-63 U.S. Treasury 1963-65
Deputy Undersecretary for Monetary Affairs, U.S. Treasury 1965-68 Vice President for
Planning, Chase Manhattan Bank 1969-74 Undersecretary for
Monetary Affairs, U.S. Treasury
1975 President, Federal Reserve
Bank of New York
110 The
Federal Reserve Today The
Federal Reserve Board itself is appointed by the President. The original Federal Reserve
Board represented those very
interests that Woodrow Wilson assured the American public would not be represented in the Federal Reserve
System. The Chairman of the Board
was William G. M'Adoo, a prominent Wall Street figure, former Secretary of the Treasury - and Woodrow
Wilson's son-in-law. A key
appointment was Paul M. Warburg, the German banker brains behind the Federal Reserve System. The Warburg
family controlled the Manhattan
Bank. Also on the Board was Charles S. Hamlin, of the Carnegie Endowment for International Peace. Another member
of the original board was banker
W. P. G. Harding. Franklin D. Roosevelt's
uncle, Frederic A. Delano, was Vice Governor of the board - very appropriate because the "liberal"
Roosevelts came from an old-time
New York banking family. John Skelton Williams, President of the Richmond Trust Company was another
member. Thus, the initial makeup
of the original Board of Governors reflected the elite and the banking interests and from that time on
the Federal Reserve System has
continued to reflect those interests. Trilateral Arthur M. Burns was Chairman of the Board
from 1970 to 1978, a dominant
voice who pretty much dictated Federal Reserve policy. According to Board member and Trilateral Andrew
Brimmer, "Arthur Burns has
had a direct hand in selecting every board member. " Trilateral dominance of the
domestic monetary system suggests
we examine Trilateral world order objectives for a possible linkage. Trilateral policy makers and
analysts fully realize that the world
monetary system, with created money as reserve assets, is in a state
of collapse. The Triangle Papers
dealt with the world monetary systems
(Towards a Renovated World Monetary System), and was authored by Richard N. Cooper 111 The Federal Reserve
Conspiracy (later
Undersecretary of State for Economic Affairs). Motoo Kaji, Professor of Economics at Tokyo
University (author of a book in
Japanese, Gendai No Kokusai Kinyu - Contemporary International Monetary Affairs) and Claudio Segre, a
French banker with Compagnie
Europeenne de Placements.
Triangle Paper No. 1 identified two world problems: (a), how to achieve full employment without
"rapid" inflation, and (b), how to combine "managed" national economies into a
"mutually beneficial world
economy." It is vital
to hold Trilateralist assumptions in mind. Trilateralists are not looking for a solution to the
world monetary problems:
Trilateralists are looking for a "solution" consistent with,
and which will promote, their own
objectives. These objectives are: (a), a managed economy, i.e., managed by Trilaterals; and (b), a "new
world order" of these managed
economies. Once again we
find manipulation of a problem to achieve
Trilateral objectives. Almost on a daily basis we find reflections of
the struggle to keep a hold on the
U.S. monetary system in order to achieve
a world federal reserve system. Fed Monetizes Foreign Debt In the early 1980s the Fed, through Paul Volcker,
conned Congress into another vast
expansion of monetary credit through
monetization of foreign debt instruments. The so-called Depository Institutions Deregulation and
Monetary Control Act of 1980 is a
total misnomer. In practice it brings all banks under Fed control whether they like it or not and gives the
Fed power to vastly increase fiat
money by monetizing foreign debt, much of it worthless (see attached reproduction from the Bill). Once again the Fed did everything
possible to avoid publicity. Only
one Congressman, Dr. Ron Paul, spotted the clause to monetize foreign debt. To avoid any publicity,
the 112 The Federal Reserve
Today Chairman of the
Banking Committee quickly agreed to Paul's request to remove the clause: "You want it removed? We'll take it
out." Then we get a
repeat of the unconstitutional conduct surrounding the 1913 FRS Act. The House voted for the Bill without the
clause - but in Conference
Committee it was quietly re-inserted and became part of the Act as finally approved by both
Houses. We doubt any Congressman
knew what was included in the bill as finally passed - that's the influence of the Fed
today. Quietly, without
fanfare - and with the vast bulk of citizens unaware - the world bankers have been building an
international money machine: an
international Federal Reserve System with power to control the world's financial and economic system. The elements of this global money
machine can be traced back to the
League of Nations and the Bank of International Settlements in the 1920s. After World War Two the
International Money Fund and the
World Bank were instituted to globalize credit and loans. Then in the late 1950s came the
Eurodollar market, now a vast
international market dealing in deposits and credits denominated in dollars outside the United States. The
Eurodollar system may in the light
of history come to be seen as a first step in a global dollar system. Eurodollars are dealt in by banks not
resident in the U.S. and by
institutions not subject to U.S. banking regulations and
restrictions. Paul A.
Volcker, former Fed Chairman, has made the role of appointments to the Federal Reserve Board clear, - to
support the Chairman's
policy. In reference to
Clinton appointment Alan Blinder, Volcker
commented: I think a
vice chairman has a responsibility for supporting policy in public statements. If he has 113 The Federal Reserve
Conspiracy any real difference
of opinion at the end of the day that shouldn 't be disguised but as much as possible he should support
the institution. In brief, the policy created by
New York bankers should prevail,
whatever the personal opinions of the Vice Chairman of the Board or any lesser Director. Which is about as
close to a closed shop monopoly as
one can get. In replying to
criticism that he spoke out too much, Alan Blinder made a revealing comment: "When we take actions, they
are not reversible by any other
body of government..." New York Times, September 26, 1994. So here we have it. The Federal Reserve is a private
monopoly of money credit created
by Congress under highly questionable
circumstances which is beholden to the Chairman of the Board and whose decisions cannot be changed by
Government or anyone else. A
free society under the rule of law? The United States has quietly become a hostage to a handful of
international bankers. And just dare
any Congressman challenge Fed authority! 114 The Federal Reserve Today Federal Reserve Bank
of San Francisco Claims "Some people
think we're a branch of the Government We're not We're the banks' Bank. " This confirms our discussion in
this book. July
16, 1979- £23
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